diff --git a/src/dev-app/select/select-demo.html b/src/dev-app/select/select-demo.html
index abc808b618cd..21a0ab5f7d7e 100644
--- a/src/dev-app/select/select-demo.html
+++ b/src/dev-app/select/select-demo.html
@@ -222,7 +222,7 @@ <h4>Error message with errorStateMatcher</h4>
     <mat-card-content>
       <mat-form-field [color]="pokemonTheme">
         <mat-label>Pokemon</mat-label>
-        <mat-select multiple [(ngModel)]="currentPokemon"
+        <mat-select multiple [(ngModel)]="currentPokemon" [panelMaxHeight]="pokemonPanelHeight"
           [required]="pokemonRequired" [disabled]="pokemonDisabled" #pokemonControl="ngModel">
           <mat-option *ngFor="let creature of pokemon" [value]="creature.value">
             {{ creature.viewValue }}
@@ -239,6 +239,10 @@ <h4>Error message with errorStateMatcher</h4>
           <option *ngFor="let theme of availableThemes" [value]="theme.value">{{ theme.name }}</option>
         </select>
       </p>
+      <p>
+        <label for="pokemon-panel-height">Theme:</label>
+        <input type="number" id="pokemon-panel-height" [(ngModel)]="pokemonPanelHeight">
+      </p>
       <button mat-button (click)="setPokemonValue()">SET VALUE</button>
       <button mat-button (click)="pokemonRequired=!pokemonRequired">TOGGLE REQUIRED</button>
       <button mat-button (click)="pokemonDisabled=!pokemonDisabled">TOGGLE DISABLED</button>
diff --git a/src/dev-app/select/select-demo.ts b/src/dev-app/select/select-demo.ts
index 21469fbc7bd4..8f71bd6d7ce0 100644
--- a/src/dev-app/select/select-demo.ts
+++ b/src/dev-app/select/select-demo.ts
@@ -47,6 +47,7 @@ export class SelectDemo {
   topHeightCtrl = new FormControl(0);
   drinksTheme = 'primary';
   pokemonTheme = 'primary';
+  pokemonPanelHeight = 256;
   compareByValue = true;
   selectFormControl = new FormControl('', Validators.required);
 
@@ -77,6 +78,19 @@ export class SelectDemo {
     {value: 'jigglypuff-4', viewValue: 'Jigglypuff with a really long name that will truncate'},
     {value: 'ditto-5', viewValue: 'Ditto'},
     {value: 'psyduck-6', viewValue: 'Psyduck'},
+    {value: 'caterpie-7', viewValue: 'Caterpie'},
+    {value: 'weedle-8', viewValue: 'Weedle'},
+    {value: 'pidgey-9', viewValue: 'Pidgey'},
+    {value: 'rattata-10', viewValue: 'Rattata'},
+    {value: 'spearow-11', viewValue: 'Spearow'},
+    {value: 'ekans-12', viewValue: 'Ekans'},
+    {value: 'sandshrew-13', viewValue: 'Sandshrew'},
+    {value: 'nidoran-14', viewValue: 'Nidoran'},
+    {value: 'clefairy-15', viewValue: 'Clefairy'},
+    {value: 'vulpix-16', viewValue: 'Vulpix'},
+    {value: 'zubat-17', viewValue: 'Zubat'},
+    {value: 'oddish-18', viewValue: 'Oddish'},
+    {value: 'paras-19', viewValue: 'Paras'},
   ];
 
   availableThemes = [
diff --git a/src/material/select/select.scss b/src/material/select/select.scss
index ef021f3cac73..d64a6814f4f8 100644
--- a/src/material/select/select.scss
+++ b/src/material/select/select.scss
@@ -6,7 +6,6 @@
 
 $mat-select-arrow-size: 5px !default;
 $mat-select-arrow-margin: 4px !default;
-$mat-select-panel-max-height: 256px !default;
 $mat-select-item-height: 3em !default;
 
 $mat-select-placeholder-arrow-space: 2 * ($mat-select-arrow-size + $mat-select-arrow-margin);
@@ -93,7 +92,6 @@ $mat-select-placeholder-arrow-space: 2 * ($mat-select-arrow-size + $mat-select-a
   @include mat-menu-base();
   padding-top: 0;
   padding-bottom: 0;
-  max-height: $mat-select-panel-max-height;
   min-width: 100%; // prevents some animation twitching and test inconsistencies in IE11
   border-radius: 4px;
 
diff --git a/src/material/select/select.ts b/src/material/select/select.ts
index f8875435c053..097abd42fab7 100644
--- a/src/material/select/select.ts
+++ b/src/material/select/select.ts
@@ -8,7 +8,7 @@
 
 import {ActiveDescendantKeyManager, LiveAnnouncer} from '@angular/cdk/a11y';
 import {Directionality} from '@angular/cdk/bidi';
-import {coerceBooleanProperty} from '@angular/cdk/coercion';
+import {coerceBooleanProperty, coerceNumberProperty} from '@angular/cdk/coercion';
 import {SelectionModel} from '@angular/cdk/collections';
 import {
   A,
@@ -101,9 +101,6 @@ let nextUniqueId = 0;
  * the trigger element.
  */
 
-/** The max height of the select's overlay panel */
-export const SELECT_PANEL_MAX_HEIGHT = 256;
-
 /** The panel's padding on the x-axis */
 export const SELECT_PANEL_PADDING_X = 16;
 
@@ -238,6 +235,14 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
   /** The scroll position of the overlay panel, calculated to center the selected option. */
   private _scrollTop = 0;
 
+  /**
+   * The max height of the select's overlay panel
+   * 256 value is define has follow:
+   * - display 5 select options of 48 px (240px)
+   * - remaining 16px help the user to see if other options are available
+   */
+  private _panelMaxHeight = 256;
+
   /** The placeholder displayed in the trigger of the select. */
   private _placeholder: string;
 
@@ -388,6 +393,13 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
     this._disableOptionCentering = coerceBooleanProperty(value);
   }
 
+  /** Define select panel maximum height. */
+  @Input()
+  get panelMaxHeight(): number { return this._panelMaxHeight; }
+  set panelMaxHeight(value: number) {
+    this._panelMaxHeight = coerceNumberProperty(value) || this._panelMaxHeight;
+  }
+
   /**
    * Function to compare the option values with the selected values. The first argument
    * is a value from an option. The second is a value from the selection. A boolean
@@ -805,6 +817,9 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
    */
   _onAttached(): void {
     this.overlayDir.positionChange.pipe(take(1)).subscribe(() => {
+      // Set panel max-height dynamically after creation.
+      this.panel.nativeElement.style.maxHeight = `${this._panelMaxHeight}px`;
+
       this._setPseudoCheckboxPaddingSize();
       this._changeDetectorRef.detectChanges();
       this._calculateOverlayOffsetX();
@@ -1037,7 +1052,7 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
       activeOptionIndex + labelCount,
       this._getItemHeight(),
       this.panel.nativeElement.scrollTop,
-      SELECT_PANEL_MAX_HEIGHT
+      this._panelMaxHeight
     );
   }
 
@@ -1057,7 +1072,7 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
   private _calculateOverlayPosition(): void {
     const itemHeight = this._getItemHeight();
     const items = this._getItemCount();
-    const panelHeight = Math.min(items * itemHeight, SELECT_PANEL_MAX_HEIGHT);
+    const panelHeight = Math.min(items * itemHeight, this._panelMaxHeight);
     const scrollContainerHeight = items * itemHeight;
 
     // The farthest the panel can be scrolled before it hits the bottom
@@ -1188,7 +1203,7 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
                                   maxScroll: number): number {
     const itemHeight = this._getItemHeight();
     const optionHeightAdjustment = (itemHeight - this._triggerRect.height) / 2;
-    const maxOptionsDisplayed = Math.floor(SELECT_PANEL_MAX_HEIGHT / itemHeight);
+    const maxOptionsDisplayed = Math.floor(this._panelMaxHeight / itemHeight);
     let optionOffsetFromPanelTop: number;
 
     // Disable offset if requested by user by returning 0 as value to offset
@@ -1204,8 +1219,8 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
 
       // The first item is partially out of the viewport. Therefore we need to calculate what
       // portion of it is shown in the viewport and account for it in our offset.
-      let partialItemHeight =
-          itemHeight - (this._getItemCount() * itemHeight - SELECT_PANEL_MAX_HEIGHT) % itemHeight;
+      let partialItemHeight = itemHeight -
+          (this._getItemCount() * itemHeight - this._panelMaxHeight) % itemHeight;
 
       // Because the panel height is longer than the height of the options alone,
       // there is always extra padding at the top or bottom of the panel. When
@@ -1241,7 +1256,7 @@ export class MatSelect extends _MatSelectMixinBase implements AfterContentInit,
 
     const panelHeightTop = Math.abs(this._offsetY);
     const totalPanelHeight =
-        Math.min(this._getItemCount() * itemHeight, SELECT_PANEL_MAX_HEIGHT);
+        Math.min(this._getItemCount() * itemHeight, this._panelMaxHeight);
     const panelHeightBottom = totalPanelHeight - panelHeightTop - this._triggerRect.height;
 
     if (panelHeightBottom > bottomSpaceAvailable) {